12 Nov A Healthy Investment: The Impact of Surrey’s New Hospital on Property Values
Few real estate development projects can rival the impact of a new hospital on the surrounding community and local businesses.
The government of BC first made the official announcement in 2019 that a new hospital is finally coming to Surrey.
The project, located in the Cloverdale neighbourhood at 5500 180 Street, is planned to meet a LEED (Leadership in Energy and Environmental Design) Gold Standard, with features including 168 beds, a large medical imaging department, pharmacy, laboratory, academic spaces and a child care centre, along with an integrated BC Cancer Centre.
The plan was to have the hospital ready for patients by 2027. However, last month CBC reported that the opening date has been pushed back by three years, with a new scheduled operational date of 2030 along with a substantial budget increase, from an original $1.7 billion cost to a new price tag of $2.88 billion.
What does this mean for Surrey residents?
Statistics from the Surrey Board of Trade indicate that the population of Surrey is projected to reach over 710,000 residents by 2031, a significant increase of about 8 to 9% from the current population. The delay in construction means that Surrey residents will have to continue to commute to either Surrey Memorial Hospital, or other municipalities within the Lower Mainland in order to access necessary care and treatments. The need for another hospital remains high for Surrey residents as these bridge and tunnel routes run the risk of being subject to high-volume traffic.
What does this mean for property values?
Increased Demand for Services:
A new hospital will inevitably bring an increase in foot traffic from patients, visitors and health care professionals, which will then translate to increased demand for services like restaurants, cafes and other retail shops plus office spaces . This is beneficial for both existing and prospective commercial property owners, as lease rates and property values both have the potential to rise.
Increased Demand for Office/Auxiliary Health Care services:
The future hospital will also attract other similar businesses, such as medical offices, clinics and pharmacies. The surrounding real estate would possibly be highly sought after by businesses seeking these new opportunities. Current commercial property owners would be savvy to consider providing specifically tailored services to cater to these future health care related tenants.
More Employment Opportunities:
With the new health care professionals, administration and support staff who’ll be hired for the new hospital, there will be an increase in both population and disposable income to the area. With it, Cloverdale can anticipate growth in their retail and housing sectors, making the area an overall more attractive neighbourhood from both a commercial and residential perspective.
Property owners and real estate developers should also consider their future options when it comes to rezoning applications, as there will potentially be opportunities for them to align their proposed projects with the needs of the emerging community that will come from the new hospital. Rezoning could involve expanding on permissible uses, adjusted density allowances or revised land regulations, subject to future municipal guidelines and bylaws.
There are also potential challenges that may arise in the future for Cloverdale, such as increased traffic congestion and potential zoning regulations. A new hospital is by no means a guarantee that property values will increase. There are many contributing factors to consider, most specifically the current industrial zoning that surrounds the future hospital site. But with some planning, collaboration with local authorities and a bit of creativity, the new hospital has the potential to create exciting opportunities to build a healthy future for Surrey and the rest of the Fraser Valley.